Shelter Six:  National Homeownership Rate Up to 64.8%

Housing demand continues to be strong.  For the third straight year, there was growth in homeownership and 2018 ended up being the strongest year for owner household formation since 2004.

National Homeownership Rate up.  The Census Bureau reported last week that the national homeownership rate rose in the 4th Quarter to 64.8%, the highest level since 2014.

The largest gains came from the 35-44 age group (up 1.2% to 61.1%) and the under 35 age group (up .5% to 36.5%).

GDP continues to be strong and was up more than expected over the 4th Quarter (2.6%), with unexpected strength seen in business investment and exports.

2018 GDP ended the year at a solid 2.9%, the highest level since 2015.  2019 forecasts are for slower growth (2.5%) as the tax cut stimulus fades and the economy struggles overseas.

Negotiations with China progress.  The U.S.’s plan to increase tariffs on Chinese goods on March 1 was postponed last week as talks with China continue.

Rate Update

Stronger than expected economic growth data along with progress in trade negotiations with China put upward pressure on mortgage rates last week.

This Week

The ISM National Services Index is due out on Tuesday with the Employment Report due out on Friday.

March 4, 2019 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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